Lawsuit: Hard Rock owners stiff contractor
David and Jon Park, owners of the Lake Tahoe Hard Rock, are being sued for $10 million by one of the contractors. Photo/Denise Haerr
By Kathryn Reed
A contractor who did millions of dollars worth of work at Lake Tahoe Hard Rock is suing the owners for lack of payment.
“There are a lot of good people out of a lot of money right now. We are fighting for all of them,” Joe Stewart with SMC Contracting told Lake Tahoe News. “They haven’t given us a legitimate reason why they won’t pay us. They have used a lot of stall tactics.”
SMC did most of the work on the ground level – meaning the casino floor and restaurants.
The original contract was for $9.6 million. It ballooned to more than $19 million. To date SMC has been paid about $10 million and has about that much more to collect.
“We worked with them on a daily basis, almost hourly,” Stewart said. “They signed change orders they have not paid us on.”
Stewart said the owners were well aware of what the costs were as they requested changes.
Brothers David and Jon Park own the property. In October 2013 it was announced that the Park family, which has a number of holdings on the South Shore and in the Carson Valley, would be dividing their assets. The brothers got possession of what was the Horizon at the time.
These two have nothing to do with the Edgewood Lodge that will break ground in August – which SMC is working on – nor Edgewood Tahoe Golf Course.
When the lease was about to expire at the Horizon they initially were going to create what was going to be called the Park Tahoe, which is what MontBleu was named when it first opened. Then last summer it was announced the brothers were infusing $60 million into what would become the Hard Rock hotel-casino.
Rumors had been swirling even before the Jan. 28 opening that there were cost overruns and not all of the improvements originally planned would be developed.
Neither of the Park brothers returned calls.
According to the lawsuit that was filed last week, the owners submitted revised drawings in November – this was listed as revision No. 9. But the changes didn’t stop there, they just weren’t numbered after that.
“… the fact that eight revisions beyond that were contracted for were provided during the course of construction, the value of work performed more than doubling the original contracted contemplation by the contractor, all demonstrates the bad faith and unscrupulous practices of Neva, its agents and its representatives,” the court documents states.
Neva is the name of the company the Park brothers started for the Hard Rock project.
Many of those who are owed money are subcontractors from the Lake Tahoe and Reno area, with a few from Sacramento. SMC has paid a few of the smaller ones out its pocket.
“The short story is the owners made an incredible amount of changes to the project after it started and they demanded it get open by Jan. 28, but that came at a big cost,” Stewart said. “Once the building opened, they said they won’t pay us.”
I hate it when someone doesn’t pay me the 9 million dollars they owe me.
What goes around ,comes around,
They might not have the cash. The place is almost empty and isn’t all that impressive.
It is nice in there. And it always appears to be at least as busy as any of the other casinos in town.
But I know they have had several operational challenges, or shall we say hiccups. More than could just be explained away as grand opening, newly operating, growing pains.
And they’ve already lost some mgt. With the rumor mill swirling that all the top mgt. is looking to jump ship.
Are these the same Parks that the city of SLT is bending over backwards to build a loop road for?
Dogula, your answer lies in the article.
‘Brothers David and Jon Park own the property. In October 2013 it was announced that the Park family, which has a number of holdings on the South Shore and in the Carson Valley, would be dividing their assets. The brothers got possession of what was the Horizon at the time.
These two have nothing to do with the Edgewood Lodge that will break ground in August – which SMC is working on – nor Edgewood Tahoe Golf Course.’
Bigger…. Blood is thicker than paper. As I understand it, when the holdings of the Park Family were divided in 2013, one part of the family got Edgewood and another part got the Horizon, etc. at the South Shore.
They’re still family, even after the court decision of who got what.
Dog, as i see it, it isnt the city that is bending over but rather the Tahoe Transportation District. If the city was bending over, they would have agreed to eminent domain, and not demanded other choices.
Way to go Parks, screw the little guys so you can act like big shots. I will never give one dime of my money to you.
This is how the “gaming” industry at Lake Tahoe finally (and thankfully) ends: “not with a bang but a whimper.” With apologies to T.S.Eliot.
Check out the comments on Yelp. New hiccups expected, but this stuff? Sounds like they did next to nothing to the hotel rooms.
Copper-
I don’t know whether to hope you are right or hope you are wrong, but my gut , (based on all the other gambling out there soaking up customers), says you are correct.
Zip lines, mountain bobsled rides and calling out everything as green is not going to resolve the problem of too many people trying to divvy up the too few dollars coming in from less frequent (or perhaps less affluent) visitors.
The City of South lake is so fixed on continuing business as it was in the 1970s that we cannot depend on them to consider anything new until the aging council members driving the ship are out of the picture by voter action, or more likely by simply old age.
The lake is seemingly moving back towards the 1950s, more or less. It is a fact that less precip means less “stuff” in the lake, netting an increase in clarity. What will happen to TRPA if the clarity goals are met, the remaining developable lots are built out and there are no more big projects to charge high fees for permitting?
My deepest fear, having watched the Angora fire, is that it all ends with a conflagration started by an idiot (likely a tourist) which spreads valley wide and there is little left to live in, have a business in, or to do except listen to the quiet of nature rebuilding what it was like in the 1840s.
What comes around goes around! They have been driving away customers and great employees. Poor service and cutting corners just to get opened showed from the begining. Have heard of many disgruntled employees that that cant do the Job correctly because the upper Mgt team from Vegas and Parks has no clue what they are doing. Too bad they had an opportunity to tb the next big thing now just the next big failure.
Their father would be disgusted. That’s not the way he did business!! Also city council please take notes on the loop road to guys like this.
Yes, these Parks were born with a silver spoon…Old money they were GIVEN. Must be nice to have not had to earn it like your elders did. Lazy money!
I was at the Hard Rock soon after it opened. PATHETIC!!! Terrible service at the “oyster bar”. Lame employees who made nothing but excuses as did food managers. This might work for tourists but it will not for locals. You idiots need our money in the shoulder seasons….oh but that’s right, you Parks inherited lots from your parents, etc. who had morals and values. They would be ashamed at your lack of anything. You will soon destroy all that they have built. Lazy A$$ trust fund babies.
These rich punks should have all their assets frozen. Way to screw the contractors. I hope they pay double. Will never drop a penny in any of their holdings.
“What goes around comes around” may be the most accurate comment – Del Webb treated contractors the same when the original Sahara Tahoe was built, and the Parks reputedly hated everything about the Horizon in the interim. . .which was why it ended up in such a state of disrepair. . .
“Rehab” money was sunk into the MontBleu (and nothing into the Horizon) when changing the identity from Caesar’s (when the Gaming Commission wouldn’t allow three Stateline casinos under the same ownership.
Just what South Shore needed: two casinos under control of two-sides of a divisive family, and the other two in bankruptcy proceedings. . .
Great karma & vibes toward economic rervitalization, which the namesakes never needed. . .
“What goes around comes around”, indeed. . .a modern day ‘Del Webb” issue. . .
Did we really need this kind of drama (?) – the original Park Tahoe (Caesar’s) didn’t open for about two years when built, presumably due to not having sufficient “win’ capital required by the Gaming Commission – when Caesar’s from Las Vegas stepped in. . .
What’s truly sad is that the Parks brothers are a couple of trust fund brats, that are out to get even more wealthy on the backs of hard working people from there own community. I don’t know how the Parks can afford to remodel the Overton in Gardnerville, yet not pay the bills they already owe?
These men are disgusting, that’s what money can do to you when it’s given or inherited and not worked for. They pushed and pushed the guys and it had to be done by the the January 28 date at any cost, which it was. Then they refuse to pay!?!? These men are used to getting their way at any cost as long as it doesn’t affect them. I’m sure even being sued it will be tied up in court for a very long time. I only hope justice prevails.
This story seems a little one sided.. Neither Hard Rock or Neva had any contribution to the article. Sure the author claims that the Park Brothers didn’t return calls, but why not reach out to anyone representing Hard Rock? Not agreeing or disagreeing with what is going on, there are just two sides to every story.
I am taken back by this article. Last summer the entire town was stoked to see new life in South Tahoe, but screwing people along the way isn’t the way to build support. This is not what this community was built on!
The biggest question… how the hell do you miss budget by 100%. What the hell happened? Was anyone paying attention. I’m shocked at the lack of oversight. The Park’s might want to think about hiring someone to run the place cause obviously they can’t.
If this is how the Hard Rock is being run, they are doomed! Say good bye to Hollywood and welcome back the old Horizon.
This hurts the small local contractors and vendors that worked for SNC. That’s who The Hard Rock and Parks are pushing around. Maybe even BK the little guys. Old fashion PR is hard to find in Stateline these days.
@ Adam, they are not commenting because they are in the wrong, they are guilty as hell.
They approved contracts, signed all the change orders, knew the cost and okey doked everyone to get the job done for the opening, and once it was opened they just wanted to not pay. They’re offering to pay so much and it’s not close to what is owed to the smaller contractors. How do I know this, we are one of the contractors that did a lot of work on this building. We have met personally with the Park brothers and they are being very unreasonable.
Hey Parker. Guess what? I agree with you. I don’t know what Hard Rock is getting at with not paying for the work done (negotiations?), but the place looks much better and it actually has customers now.
Unfortunately the Parks did hire someone to run the place but they have and continue to make very poor business decisions! They are screwing the local business owners that worked hard to get this place open!
Had dinner with friends at the Fire Break restaurant after it opened, mediocre at best, overpriced Denny’s menu, food took forever to arrive and served cold by the time it got there, music blaring from speakers over the table so nobody could hear the conversation, now this kind of misbehavior and mistreatment by the owners. No reason whatsoever to go back to that place.
Hard Rock and Park brothers. You ain’t gettin’ a penny outta me if you refuse to pay for work done to spruce up that old place.
I will pass the word along to others “Don’t go there!”
Pay for the work that was done! Old Long Skiis
How about having some of the people who weren’t paid picket along the rout of their half marathon.
Park Bros. So you can get work done on your place and not pay the people that did the work?
When I have work done on my property I pay the bill!
Park bros., you set an interesting precedent.If you get away without paying the contractors and their workers, do I have to pay the plumber or painter that worked on my house?
Speaking of painters, I think you guys just painted yourselves into a corner.
Pay up or get out! OLS
Jim L. you are correct. The Parks did hire a company named Warner Hospitality to run their operation. Another out of towner who has no concept of the Lake Tahoe community. These Vegas style tactics won’t work in Tahoe without repercussions.
Perhaps the Parks should have done their homework. Google is your friend…. Warner also runs the Hard Rock in Las Vegas who have incurred losses of over $100 million for the last three years. Not someone I would have chosen to run my operations. Hopefully they have an out! USE IT!
After some time can’t the contractors go in with a sheriff and start taking assets for payment? I saw a YouTube video where a guy did it to a Bank of America. Showed up with a moving truck and started taking computers. They cut him a check real fast.
Park’s trust of the local contractors = Free dip in the $ pot for the local Tahoe talent.
The two brothers are now labeled in the construction industry as “Idoiots” that is a polite way of what they can really be labeled. If they only understood the affect of not paying their contractor and the trickle no wait flash flood affect to the subs financially because the idiots wont pay out. Do they think that sub contractors have spare money in there back pocket to pay suppliers and overhead in this economy ? If i was the general contractor or even a sub i would go after the the idiots with both barrels and take there names a reputation to the dirt… The hard rock corporation should step in and put an end to these idiots and take away their opportunity in any ownership in this hotel. If they dont then they aren’t any better then the idiots
The changes made to Hard Rock have moved that place to be funner than any of the other casinos in South Lake. The direction they are headed needs to be pushed through quicker to not lose the interest of those that have been waiting for this. South Lake has needed something new for so long. Harrah’s is a waste. Harvey’s and Monte Blue lacking significantly. This family needs to step up and pay those contractors now, and finish the work they started. Get the “pool experience” in, finish the concert room and get those upgrades done. Especially in time for Summer. In its current state, it already exceeds the other places, but don’t lose respect of the people by flaking on their responsibilities. This is huge visibility.